Help, I've been chopped!

[NoDoji]

Quote from bmwhendrix:

ND, I'm surprised you did not take, or mention this beautiful bottom right after your short. It was off of a stronger support pivot.

Just kidding a little. Really just wanted to post a nice PA setup for surf.

I didn't take the trade I described on the posted chart. I was looking back at it and analyzing the choppiness after my friend talked about the morning chop in the NQ.

I did trade the NQ late in the day. I was short 3130.50 at 3:51 and covered 3124.25 at 4:06 eastern time.

I sat down and saw exactly what I wanted to do about a minute prior to placing my order.

Knowing I use a 5min chart for overall context and signal, and 1min chart for precision entries, can you describe the context, trade signal, reason for offering to sell at 3130.50, and reason for locking in a profit where I did?

 

[Buck95]

Quote from NoDoji:


Knowing I use a 5min chart for overall context and signal, and 1min chart for precision entries, can you describe the context, trade signal, reason for offering to sell at 3130.50, and reason for locking in a profit where I did?

Trendline break suggests new downtrend and possible 1-2-3 short. The break below 3129.25 confirms the short trade and could be entered here.

Using the one minute chart to enter on a pull back to 3130.50 gives a better entry using the overhead resistance at 3131.50 as a logical stop loss.

I see the profit target as one tick above the session low at 3124.00. Another possible profit target could be calculated from a measured moved which terminates near the channel low (not drawn).

I've attached a chart, but I'm not sure it will display since this is my first try.

(Note that I'm posting this late on Wed. night, but I'm sure will not show up until Thursday since my posts are moderated as a new member.)

 

[mcgene4xpro]

Nice thread ..

However, have you tried to automate your roles?

 

[stillgrinding]

Quote from NoDoji:

It would be great to see your trades. I'll offer a detailed review and you'll probably get more out of it than from reading Al Brooks entire book.

Oh. Wait. That's not promising much, is it...



Seriously, I think a "third party" analysis from me will give you some ideas you can apply to past charts and then practice recognizing in real time.

Thank you for your offer to help. I'll turn on my chart trader with markers so we can see my trades.
I have all four of Al Brooks' books. Although I have managed to pull out some good tidbits here and there, I cannot manage to sit down and really absorb what's written.

 

[Buck95]

Quote from NoDoji:

I'm a day trader and IMHO what makes day trading so difficult is developing the mindset to analyze things quickly. A swing trader can see a setup, put on a position when signaled and not have to change "bias" for days or weeks.

An intraday scalper like myself can see a setup, put on a position, watch before my very eyes as a new opposing scenario arises, and shift gears quickly.

NoDoji,

I'm one of those swing traders who is now working on the ability to day trade. And yes, the speed at which decisions must be made has been a challenge for me.

I've been studying the posts of Redneck, NoDoji, bighog and others. These have been a tremendous help.

Here is one thing that has really improved my day trading. I'm keeping a real time journal now. And indirectly, my trading log serves to keep me out of chop.

By writing down my thoughts as I see them unfold on a 5 min chart, my focus is maintained as I wait for my patterns to develop. And that in itself helps to keep me "out of trouble".

-Al

 

[Wait4proof]

Quote from NoDoji:

I'm a day trader and IMHO what makes day trading so difficult is developing the mindset to analyze things quickly.

In my mind, to rely on "analyzing things quickly" equates to "listening to your gut". And, yes, it is difficult to develop, since such strategies cannot be backtested. Although very often we say, "if only I would have listened to what my eyes were telling me, blah, blah". So it seems like a benefit to develop such. But is it? Not really.

What makes day trading so difficult is:
1) controlling your emotions enough to stick to a plan
= (a) sitting in cash 90% of the time
= (b) go with the larger trend
= (c) be intolerant of losses, period
= (d) grab your profits, period
2) overcoming commissions and slippage
3) tick-tock the day is over too quickly (options at least, not futures)

To rely on "quick thinking" equals "lack of control". For example, here is how every quick-thinking daytrader could make more money: wait 5-minutes before opening a position. If you feel that you cannot do this, then you are being desperate (as in, you think you will miss it, or you are chasing it).

I say "slow thinking" equals "stay in control". For example, place a boring limit order ahead of time and "wait" to be filled. What? Is that not exciting enough?

Quote from NoDoji:

Zooming out is great for us day traders to note key levels that "large eyes" are watching. I use a 60-min chart a week long to draw longer term trend and channel lines and this protects me from trading right into a key S/R level on the initial approach.

I agree 100%.
Anything else is reading tea leaves - you WILL trick yourself.

 

[DTB2]

Quote from Buck95:

NoDoji,

I'm one of those swing traders who is now working on the ability to day trade. And yes, the speed at which decisions must be made has been a challenge for me.

I've been studying the posts of Redneck, NoDoji, bighog and others. These have been a tremendous help.

Here is one thing that has really improved my day trading. I'm keeping a real time journal now. And indirectly, my trading log serves to keep me out of chop.

By writing down my thoughts as I see them unfold on a 5 min chart, my focus is maintained as I wait for my patterns to develop. And that in itself helps to keep me "out of trouble".

-Al

If you have been swing trading, I assume successfully, why switch to day trading? The usual progression is the other way. Day to swing and finally a position trader.

It's a LOT of high speed work to grind it out on a daily basis.

YMMV

 

[NoDoji]

Quote from Buck95:

Trendline break suggests new downtrend and possible 1-2-3 short. The break below 3129.25 confirms the short trade and could be entered here.

Using the one minute chart to enter on a pull back to 3130.50 gives a better entry using the overhead resistance at 3131.50 as a logical stop loss.

I see the profit target as one tick above the session low at 3124.00. Another possible profit target could be calculated from a measured moved which terminates near the channel low (not drawn).

You absolutely nailed it. And my target was indeed a measured move zone; at that area I locked in a profit.

OK, you can take over this thread now.

 

[NoDoji]

Quote from Buck95:

By writing down my thoughts as I see them unfold on a 5 min chart, my focus is maintained as I wait for my patterns to develop. And that in itself helps to keep me "out of trouble".

-Al

I do the same, but I talk to myself.

 

[NoDoji]

Quote from Look4aSine:

To rely on "quick thinking" equals "lack of control". For example, here is how every quick-thinking daytrader could make more money: wait 5-minutes before opening a position. If you feel that you cannot do this, then you are being desperate (as in, you think you will miss it, or you are chasing it).

I say "slow thinking" equals "stay in control". For example, place a boring limit order ahead of time and "wait" to be filled. What? Is that not exciting enough?

I'm day trading crude oil, so the analysis has to be quick, the order needs to be place in advance, definitely, and all the thinking has to stop at that point.

Learning to patiently wait for limit orders to be filled was of great benefit to me, allowing for much smaller risk.